Best stock to invest in – Mitsui Raises Stake In BioAmber JV



Best stock to invest in

Jim Lane

In Canada, Mitsui has invested an additional CDN$25 million in
the BioAmber (BIOA)
joint venture for 10% of the equity, increasing its stake from 30%
to 40%. Mitsui will also play a stronger role in the
commercialization of bio-succinic acid produced in Sarnia,
providing dedicated resources alongside BioAmber’s commercial
team. BioAmber will maintain a 60% controlling stake in the joint
venture.

“Mitsui is continuously committed to renewable chemistry and
through our increased equity stake we will be more actively
involved in joint venture management and sales, leveraging our
global sales platforms,” said Hidebumi Kasuga, General Manager,
Specialty Chemicals Division, Basic Chemicals Business Unit. “We
are very happy with Sarnia’s fermentation and plant operations
performance to date and the JV has received quality certifications
from more than 90 customers. With this progress, I am confident
that Sarnia’s bio-succinic acid will be penetrating the global
marketplace quickly.”

“Mitsui’s increased commitment to the Sarnia plant is a strong
endorsement of its value and potential. We have in Mitsui a
financially robust, global partner that is motivated by Sarnia’s
progress and prospects,” said Jean-Francois Huc, CEO of BioAmber.
“This investment strengthens Sarnia’s balance sheet as we ramp up
production and sales.”

The publicly disclosed relationship between Mitsui and BioAmber
dates back at least to 2011, when BioAmber and Mitsui partnered to
build and operate the
previously announced manufacturing facility in Sarnia, Ontario,
Canada
. The initial phase of the facility is expected to
have production capacity of 17,000 metric tons of biosuccinic acid
and commence commercial production in 2013. The partners intend to
subsequently expand capacity and produce 35,000 metric tons of
succinic acid and 23,000 metric tons of 1,4 butanediol (BDO) on
the site.

Bioamber and Mitsui also said they would ultimately jointly build
and operate two additional facilities that, together with Sarnia,
will have a total cumulative capacity of 165,000 tons of succinic
acid and 123,000 tons of BDO.


BioAmber’s Sarnia joint venture with Mitsui & Co. Ltd. began
shipping bio-succinic acid to customers in October 2015 and is
operating its manufacturing process at commercial-scale.
Management expects the Sarnia plant to increase production volumes
progressively to reach full capacity in 2017.

When BioAmber raised $45
million dollars in a 2011 Series B financing
to accelerate
the commercialization of succinic acid and modified PBS
(polybutylene succinate, a renewable, biodegradable polymer), the
round was led by NAXOS Capital Partners and included Mitsui &
Co, Sofinnova Partners, and the Cliffton Group. BioAmber will also
strengthen its management team and build out its in-house R&D
capabilities to accelerate the development of its adipic acid
platform. BioAmber operates the only dedicated biobased succinic
acid plant and has partnerships with market leaders including
Cargill, DuPont Applied Biosciences, Mitsui & Co. and
Mitsubishi Chemical.

Jim Lane is editor and publisher  of Biofuels Digest where this

article

was originally published.
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